Market potential and welfare : evidence from the Iberian Peninsula

• Autor(a) principal: Pires, Armando José Garcia
• Data de Publicação: 2005
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10400.5/15515
• topic: Economic geography – Market potential – Centre-periphery – Iberian Peninsula; Market potential; Centre-periphery; Iberian Peninsula

We present a methodology to quantify market potential in the context of an economic geography model. The model is then applied to the NUTS 2 regions of Portugal and Spain. Some results can be pointed out. First, the Iberian Peninsula presents a clear centre-periphery pattern. The market potential pike is situated in the region of Madrid, followed very closely by Catalu˜na and Pais Vasco. Also all Portuguese regions are at the bottom of the market potential rank, i.e.: Portugal is at the periphery of Spain. Second, the regional welfare index confirms market potential results. There is therefore a direct correlation between market potential and regional welfare. Third, a scenario of complete integration between the Portuguese and the Spanish economy is favourable to the most laggard regions. On the contrary, the most advanced regions of each country loose a little. However, ‘lock-in’ effects allow the most central regions to continue in the forefront of development and welfare.